The Hidden Costs of DIY Bookkeeping: Why Experts Are Essential
Whether you’re a retail or a construction business, bookkeeping plays a pivotal role in maintaining your financial records and ensuring smooth operations. It’s not just about tracking financial data but making sure that every penny is accounted for the sake of transparency, accountability, and informed decision-making.
Bookkeeping involves the meticulous recording of financial transactions, organizing them, and classifying them accurately, ultimately providing a comprehensive picture of a company’s financial health. It is the foundation on which financial statements, budgeting, tax compliance, and strategic planning are built.
What Does Bookkeeping Mean for Businesses?
But looking closer at the realm of businesses, the significance of bookkeeping becomes even more pronounced. Companies, regardless of their size or industry, rely on the accuracy and integrity of their financial data to make informed choices and navigate the complexities of the market.
Bookkeeping, in this context, offers a real-time dashboard that empowers companies to monitor their cash flows, track expenses, and gauge profitability. It serves as a compass, guiding organizations toward prudent financial management and helping them stay within budgets and forecasts.
Beyond day-to-day operations, bookkeeping is crucial for demonstrating fiscal responsibility to stakeholders, including investors, creditors, and government authorities. It builds trust and credibility by providing an unambiguous record of financial transactions, ensuring that a company’s financial dealings adhere to regulations and comply with tax requirements.
Risks of Hiring Non-Expert Bookkeepers
Given the responsibility that bookkeeping holds, it is vital that experts handle this task for you. Otherwise, you may suffer detrimental effects that can affect the overall financial health and operations of your business. Some of the things that can happen with hiring unqualified bookkeepers involve:
Financial Inaccuracy
Hiring non-experts can lead to inaccurate financial records, which may result in misleading insights into your business’s performance. This can hinder your ability to make informed decisions and jeopardize your financial stability.
Compliance Issues
Non-experts may not be well-versed in tax regulations and reporting requirements, putting your business at risk of non-compliance. This can lead to costly fines, legal complications, and a damaged reputation.
Missed Tax Deductions
Without expert knowledge of tax laws, you may miss out on valuable deductions and credits, ultimately paying more in taxes than necessary. This can negatively impact your bottom line and limit your ability to reinvest in your business.
Cash Flow Problems
Inaccurate financial records can lead to cash flow problems, making it difficult to pay bills, invest in growth opportunities, or meet financial obligations on time. These issues can disrupt your business operations and affect your relationships with vendors and creditors.
Wasted Time and Resources
Non-experts may take longer to handle bookkeeping tasks, wasting valuable time that could be better spent on growing your business. Additionally, the cost of correcting errors made by non-experts can lead to additional expenses, impacting your profitability. Hiring professional bookkeeping experts can help you avoid these pitfalls and ensure the financial health and success of your business.
3 Reasons Why Companies Call eGO Bookkeeping
If you want to save your business from the drawbacks of financial errors and wasted resources, let pros take care of your bookkeeping needs. Not only will you feel safe knowing that the financial health of your business is in capable hands, but you also get to focus on what you do best — growing your business — and waving goodbye to the stress of handling a series of numbers.
So, if you’re looking for experts to handle your bookkeeping needs, here are 3 reasons why companies are hiring us and why you, too, should do the same:
1. Their Bookkeeper Wants To Retire
Many long-running companies have had an in-house employee bookkeeper who has worked with them for many years. This employee is invaluable as they know the work inside-out. Passing this knowledge onto a new employee will be very challenging, and they just can’t find someone with the experience they need.
Because eGO is a team of bookkeepers with a wide range of knowledge and experience in many different industries, we can step in and manage the work of most companies with ease. We require minimal training.
We are, however, very thankful if an out-going bookkeeper can provide us with some guidance in their current procedures. It is truly a bonus and the ideal situation. But in many situations, we often step in after the outgoing bookkeeper has left and must figure things out for ourselves.
2. The 3rd Party Bookkeeping Company They Recently Hired Isn’t Delivering The Goods Promised
In this situation, a company made the choice to hire either a bookkeeping company like ours or a sole proprietor/contract bookkeeper. They promised to get the work done well and on time, but they just haven’t been able to deliver. Instead, they are:
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- late processing paperwork
- late filing HST with the CRA
- not available to speak to
- are inexperienced or have inexperienced staff or sub-contractors
- not providing you with monthly reports
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eGO completes a thorough review or investigation of your company data to ensure that we understand what is needed before we prepare a proposal to work with you. We will not work with a company unless we are confident we can complete the work well and on schedule.
We are a team of 4 experienced bookkeepers. At least 2 of our employees will work on your file, and we are always available to speak with you when you need help. We take ownership of our work. We will give you accurate monthly reports when you need them.
3. They Need Better Systems for Their Payroll
Companies that struggle with many part-time employees have approached us to help them improve their outdated processes of collecting manual time sheets. They are tired of battling week after week, trying to train their staff to fill out their timesheet property and get it to their manager by the deadline. They know there must be a better way but don’t know what that is!
eGO’s payroll team, led by Sam Langer, a National Payroll Association payroll practitioner, has experience processing many different types of payroll in Ontario. We can find ways to significantly improve your processes to save you precious time.
One of our areas of payroll expertise is Paywork’s “time clock.” Employees can easily clock in and out via a fingerprint or code. Then, the hours can be approved electronically by the employee’s manager. It is a sweet setup – a million times easier than collecting, correcting, approving, and data-entering hundreds of manual timesheets. We can manage the entire implementation, train your staff and managers, and be there to process your payroll accurately and on time, week after week.
A Meticulous Process We Can Handle
Bookkeeping is more than the act of organizing data and numbers — it’s a meticulous process that can affect the success of your business. At eGO, we get it. We know those figures and systems are your lifeline, so we handle them with the utmost care and precision.
In line with that, we urge you to team up with us for your business’s bookkeeping needs and experience the peace of mind that comes with a dedicated, experienced, and detail-oriented partner. We’ll be your financial allies in your journey to success as we help customize solutions, ensure accuracy, and strive for compliance.
Let us take the bookkeeping burden off your shoulders and watch as your business thrives like never before. We would love to find out about your business and partner with you. Get a quote with us today so we can set you up for success!